There are many reasons why millions of people have taken advantage of a reverse mortgage. Are you going to be next? Before you answer this question you need to learn more. The last thing you want to do is apply for a reverse mortgage before you know if this is going to suit you and your financial situation.
Is a reverse mortgage right for me?
The following information should help you better answer this question:
You need to pay off debt. If you are looking for money to pay debt, no matter what kind it may be, a reverse mortgage could be just what you need. This may not be the ideal way to spend the proceeds, but in the long run it will better your financial situation.
You want to stay in your home, but need cash to make this happen. With a reverse mortgage you will receive money to use as you please (for the most part) without having to sell your home. For many people this is the best of both worlds. They get to stay in the home they love, but can still receive enough money to better their financial life.
You need to pay for medical expenses. It is unfortunate, but as you get older there is a good chance that your medical bills will begin to mount. Access to quality health insurance is harder to come by than ever before. If you find yourself drowning in medical debt, now may be the time to consider reverse mortgage as an option. This way you have enough money to pay some or all of your debt, and maybe even have some leftover for other things that are more exciting.
You don’t mind taking money away from your heirs. Once you pass on, your heirs are responsible for selling your home and “paying back” the reverse mortgage. In turn, this means that they are going to receive less money – if any at all. For many, this detail is what makes the decision so difficult. Remember one thing: you have to do what is best for you at the current time.
Do you qualify? This is one of the most important questions to answer before you decide for or against reverse mortgages. Above all else, keep in mind that you do not need to meet certain income and credit score requirements in order to qualify. That being said, you must be at least 62 years or age. If you are younger than this you will have to wait before you can consider a reverse mortgage. Generally speaking, the older you are the more money you will receive.
Also note that the HUD limit on reverse mortgages is $625,500.